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Notice periods in Norway
Employment termination in Norway
Post-termination restraints in Norway
Waivers in Norway
Transfer of undertakings in Norway
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End of employment in Norway
An employment relationship may come to an end for a number of different reasons, such as an employee retiring, resigning, being dismissed, or being part of a collective redundancy process. And there are certain rules that apply in each of these situations, which both employers and employees need to be aware of.
The rules surrounding the end of employment in Norway are set out in the Working Environment Act — and we’ll go through some of the most important aspects in this section. Read on to learn about notice periods, termination procedures, post-termination restraints, and transfers of undertakings in Norway.
Notice periods in Norway
When an employee or an employer wants to end their employment relationship, they have to give the other party a certain amount of notice. In Norway, notice periods are defined in the Working Environment Act.
Notice period for employees and employers in Norway
The standard notice period in Norway is one month for either party unless the relevant collective agreement or employment contract specifies otherwise. When an employee has been in continuous employment with the same employer for a certain period, they are entitled to a longer notice period. The notice periods for both employers and employees are:
- Two months after five years of service
- Three months after ten years of service
If the employee has been employed for more than 10 years, there are some situations where the employer has to give more notice to dismiss them. They must give:
- Four months’ notice if the employee is over 50
- Five months’ notice if the employee is over 55
- Six months’ notice if the employee is over 60
In all of these cases, the notice period for employees is still three months. In Norway, the resignation notice period can never be longer than the notice period for employers.
How notice periods work in Norway
Notice periods in Norway run from the first day of the month following the month when notice is given. For example, if an employee with a notice period of one month gives notice on 16 July, their notice period would begin on 1 August and end on 31 August.
Terminating a contract during the probationary period in Norway
It’s common for employers in Norway to include a probationary period of up to six months in their employment contracts. If an employee or an employer wants to terminate the employment during the probationary period, the standard notice period is usually 14 days. A collective agreement or individual employment contract may specify a different notice period.
Severance pay in Norway
There is no statutory requirement for severance pay in Norway. However, employers sometimes offer severance pay to encourage employees to accept notice. The reason for this is that employees in Norway have the right to contest a dismissal and remain in their post until the court makes a decision on their case.
Employment termination in Norway
There are strict laws concerning employment termination in Norway. In general, an employer can only dismiss an employee if they have a legitimate and serious reason. Employers also need to give the employee the appropriate notice of termination except under very specific circumstances.
Dismissal with notice in Norway
To dismiss an employee, employers typically need to give them notice, as described in the previous section. They also need to have an objectively justifiable reason for the dismissal. Normally, this falls into one of two categories:
- Economic reasons: A company needing to adjust its operations for financial reasons is typically a reasonable ground for employment termination in Norway. However, the employer must first offer the employee alternative suitable work.
- Employee conduct: Employers can also dismiss employees for reasons relating to their behaviour or performance. In this case, the employer must first address the problem by giving the employee guidance and a fair chance to improve.
In any of the above circumstances, the employer needs to give the employee notice according to their length of service. Notice must be given in writing, either in person or by registered post.
Summary dismissal in Norway
In certain rare circumstances, employers in Norway can dismiss an employee without notice. This is known as a summary dismissal and is usually only possible when the employee has grossly neglected their duty or committed another serious breach of contract.
Negotiations and legal proceedings in Norway
Employees in Norway have the right to request negotiation if their contract is terminated. They must make their request within two weeks of receiving their notice, and the employer has to hold a negotiation meeting within two weeks of receiving the employee’s request. Both parties have the right to be accompanied by an advisor (e.g., a company lawyer or trade union representative) during negotiations.
If the employer and employee are not able to reach an agreement during negotiations, the employee can initiate legal proceedings. If their dismissal is found to be invalid, they could be due either compensation or reinstatement. Employees are typically entitled to remain in their post while negotiations and legal proceedings are underway, except in the case of summary dismissals. In this case, they usually don’t have the right to stay in their post unless the court says otherwise.
Post-termination restraints in Norway
Post-termination restraints are restrictions that employers can impose on their former employees in order to protect their legitimate business interests. There are strict rules in Norway about the post-termination restraints that employers can impose and how these should work.
Non-compete clauses in Norway
Employers in Norway can ask their employees to sign a non-compete clause, which prohibits them from working for or launching a competing business after the termination of their contract. This is only permissible in Norway if it’s necessary to protect a particular need to safeguard against competition.
A non-compete clause must be agreed in writing and can have a maximum duration of one year. Employers must also compensate their former employees during the period when the restriction applies. The standard compensation is 100% of the employee’s former salary. However, the employer can deduct up to half of this amount based on any salary earned by the employee during the restriction period.
Non-solicitation of customers in Norway
Employers can also prevent their former employees from contacting or soliciting the employer’s customers. These clauses only apply to customers that the employee in question had contact with or was responsible for during the year immediately preceding the termination of their employment.
Non-solicitation of employees in Norway
A non-solicitation of employees clause is an agreement that prevents employees from taking up employment with other undertakings. This type of agreement is generally not possible in Norway, apart from in connection with a transfer of undertaking.
Waivers in Norway
In some countries, employees can waive statutory rights as part of an agreement with their employer. However, in Norway, a waiver of rights set out in the Working Environment Act is typically not possible. An employee and an employer can’t agree on terms that are less favourable to the employee than those set out in the Working Environment Act unless the Act explicitly states that the provision can be departed from.
The exception is during a termination procedure, when employees are sometimes able to waive statutory rights related to the termination of the employment relationship as part of a settlement agreement. For example, an employee may agree to forgo their notice period in exchange for severance pay.
Transfer of undertakings in Norway
When one business buys or acquires another business, the employees of the purchased entity have certain rights under Norwegian employment law. This is known as a transfer of undertaking, and the rules that apply are set out in the Working Environment Act.
What is a transfer of undertaking in Norway?
The Working Environment Act defines a transfer of undertaking as a transfer of ‘an autonomous unit that retains its identity after the transfer’. That means that the purchasing of a business’s premises or stock would likely not count as a transfer of undertaking under Norwegian law. When a transfer of undertaking is planned, both the new employer and the old employer must inform employee representatives of the transfer as soon as possible.
Employee rights following a transfer of undertaking in Norway
In Norway, the employees of a transferred entity are automatically transferred to the new employer and retain all of their existing rights and obligations. A transfer of undertaking is not a legitimate ground for dismissing an employee. However, if the transfer results in significant changes to the employee’s working conditions, this could be deemed to be a valid reason for dismissal related to the employer.
Collective bargaining agreements and transfers of undertaking in Norway
After a transfer of undertaking, the new employer is generally bound by any collective agreement that applies. If they don’t wish to be bound by the collective agreement, they must declare this to the relevant trade union in writing within three weeks of the transfer. However, employees will retain any individual working conditions outlined in the collective agreement until the agreement expires or a new collective agreement is concluded.
If employees object to the transfer of undertakings in Norway
If an employee doesn’t want to be transferred to the new employer, they can object to the transfer. They must do this within a timeframe specified by the former employer. In this case, employees have a preferential right to any new positions that arise with the former employer for one year after the transfer.
Avoid risk and missed opportunities with our end-to-end employment solutions
There are many different ways an employment contract can come to an end. But whatever the situation, you need to understand the rules that cover the end of employment in Norway — or you could end up facing legal issues.
Our solutions ensure your business is protected from risk when a relationship with a worker comes to an end — whatever the reason. We can also help you to avoid missed opportunities by re-deploying talent where possible.
FAQ's
What are the rules for terminating employment in Norway?
Termination of employment in Norway must be based on an objectively justified reason related to the employee, the employer or the business. Employers must also follow the dismissal procedure set out in the Working Environment Act before ending the employment relationship.
A valid reason alone is not enough. Before making a dismissal decision, employers should establish the facts, consider whether there are reasonable alternatives to dismissal and hold a pre-dismissal discussion meeting with the employee. Once a decision has been made, the employer must provide written notice that complies with the legal content and delivery requirements. Employer-issued notice must be delivered personally or sent by registered mail and must explain the employee’s rights to negotiations, legal proceedings and continued employment during a dispute, together with the relevant deadlines. A redundancy notice must also explain applicable preferential re-employment rights.
The notice period in Norway depends on factors such as the employee’s age, length of service and employment contract. During the notice period, employees generally continue working and receive their normal salary and benefits unless both parties agree otherwise.
Employees who believe the dismissal is not objectively justified or that the correct process was not followed may request negotiations with the employer and challenge the dismissal before the courts. Employees generally have two weeks to request negotiations and eight weeks to bring a claim seeking invalidity, although different rules apply to compensation-only claims and formally defective notices.
What is the pre-dismissal discussion meeting in Norway?
A pre-dismissal discussion meeting is a meeting an employer must normally hold before making a final decision on termination of employment in Norway. It gives the employee an opportunity to understand the proposed reasons for dismissal and respond before the employer decides whether to proceed. The meeting must be held as far as practically possible unless the employee does not want one. The employee may be assisted by an elected representative or another adviser.
The meeting should cover the proposed grounds for dismissal, the relevant facts and any information the employee wishes to provide. Employers should also consider whether there are reasonable alternatives to dismissal, particularly where the proposed end of contract in Norway relates to organisational changes or business restructuring.
In a redundancy process, the employer should discuss both the reason for dismissal and any proposed selection between employees. Suitable alternative roles within the employer and, where relevant, other companies in the corporate group should also be considered. Employees may be accompanied by a trade union representative or another adviser if they choose. The employer should genuinely consider the employee’s response before making a final decision, as the meeting forms an important part of a fair dismissal process.
What is collective redundancy in Norway?
A collective redundancy in Norway generally occurs when an employer proposes to dismiss at least 10 employees within a 30-day period for reasons that are not related to the individual employees.
Other employer-initiated terminations that are not related to individual employees may count towards the threshold, provided at least five dismissals are involved. Employers should therefore review the entire restructuring rather than only employees formally labelled as redundant.
Before proceeding, employers in Norway must consult employee representatives as early as possible and provide information about the reasons for the proposed redundancies, the number of employees affected, the selection criteria and the planned timetable. Employers must also notify NAV (the Norwegian Labour and Welfare Administration) before the dismissals take effect.
The written information should also cover the number and categories of employees normally employed, the proposed method for calculating any exceptional severance payments and the period during which the dismissals may occur. A copy of the notification provided to employee representatives must be sent to NAV.
The consultation process is intended to explore whether redundancies can be avoided, reduced or managed differently. Employee representatives must have a genuine opportunity to discuss measures that could lessen the impact on affected employees before final decisions are made. Collective redundancies cannot generally take effect earlier than 30 days after NAV has been notified, and NAV may extend that period. Individual consultation, objective selection and formal notice requirements continue to apply alongside the collective process.
A collective redundancy does not automatically entitle employees to severance pay in Norway. Severance payments are only required where they are provided under an employment contract, collective agreement or negotiated settlement. Employees are, however, entitled to any outstanding salary, accrued holiday pay and other contractual payments when their end of contract in Norway takes effect.
Is there a notice period for ending employment in Norway?
Yes. The statutory notice period in Norway is generally one month, unless a longer period applies under the Working Environment Act, an employment contract or a collective agreement.
The notice period usually starts on the first day of the month after the employee receives notice. However, longer minimum notice periods apply to employees with longer service or who are over a certain age. During a valid probation period, either party may usually terminate the employment with 14 days’ notice, provided the legal requirements for probationary dismissal are met. Probationary notice runs from the date the notice is received rather than from the first day of the following month.
During the notice period, both the employer and employee are generally expected to continue fulfilling their contractual obligations. Employees remain entitled to their normal salary and benefits unless both parties agree otherwise.
Situation | Statutory notice period |
Standard employment with less than five years’ service | Generally one month |
At least five years’ continuous service | At least two months |
At least 10 years’ continuous service and employee under 50 | At least three months |
At least 10 years’ service and employee aged 50–54 | At least four months when dismissed by the employer |
At least 10 years’ service and employee aged 55–59 | At least five months when dismissed by the employer |
At least 10 years’ service and employee aged 60 or over | At least six months when dismissed by the employer |
During a valid probation period | Generally 14 days |
When an employee resigns, the statutory notice period does not exceed three months solely because of the age-based rules. Periods of employment with certain related group companies or a previous employer following a business transfer may count when calculating continuous service. In summary, the notice period in Norway is usually one month but can be longer depending on the employee’s age, length of service or contractual arrangements. Employers should confirm the correct notice period before termination of employment in Norway.
Can the notice period in Norway be extended or shortened?
Yes. The notice period in Norway can be extended by an employment contract or collective agreement, provided the employee receives at least the statutory minimum notice required by law.
A shorter notice period is generally only permitted where the Working Environment Act allows it, such as during a valid probation period. Before notice is issued, a shorter period than the statutory minimum can generally only be agreed with employee representatives in an undertaking bound by a collective agreement or in another situation expressly permitted by law.
After notice has been given, the employer and employee may also agree to end the employment earlier by mutual agreement. The employee should enter that agreement voluntarily and understand which salary, benefits and employment rights are being waived.
If the parties agree to change the notice period, the agreement should clearly set out:
- the employee’s final working day.
- salary and benefits during the remaining period.
- treatment of accrued annual leave.
- any handover or return of company property.
Recording these arrangements in writing helps avoid misunderstandings at the end of contract in Norway and ensures payroll and final entitlements are managed correctly.
To summarise, employers can agree to a longer notice period, while shorter periods are only permitted in limited circumstances. Any change should be documented clearly so both parties understand how the employment will end.
How do fixed-term contracts end in Norway?
A lawful fixed-term contract in Norway normally ends automatically on the agreed end date or when the specific project or temporary work has been completed. Unlike permanent employment, the contract generally does not need to be terminated by giving ordinary notice unless the contract itself provides for early termination.
Where a fixed-term employee has been employed for more than one year, the employer must generally give at least one month’s written notice before the contract expires. This requirement allows the employee to prepare for the end of contract in Norway even though the contract has a fixed end date.
Ending the contract before the agreed expiry date is only possible where the contract allows early termination or where the ordinary rules for termination of employment in Norway are satisfied. During the agreed term, the Working Environment Act’s ordinary termination protections and procedural requirements apply.
Employers must also check whether the contract was lawfully temporary and whether the employee has acquired permanent status. Employees continuously employed on qualifying temporary grounds for more than three years are generally treated as permanent employees, subject to transitional rules for certain older contracts.
When the employment ends, employers in Norway should pay all outstanding salary, accrued holiday pay and any other contractual entitlements. Severance pay in Norway is not a statutory entitlement for the expiry of a fixed-term contract unless it is provided under the employment contract, a collective agreement or a negotiated settlement.
What post-employment restrictions can employers use in Norway?
Employers in Norway can use post-employment restrictions such as confidentiality, non-solicitation and non-compete clauses to protect legitimate business interests. However, these restrictions are subject to strict legal requirements under the Working Environment Act.
A confidentiality clause can continue after employment ends to protect confidential business information and trade secrets. Employers may also include non-solicitation clauses that restrict former employees from soliciting customers with whom they had contact or responsibility during the final year of employment. A customer non-solicitation clause cannot generally exceed 12 months after employment ends.
Restrictions concerning the recruitment of other employees require separate legal assessment and should not be assumed to be enforceable under the same rules as customer non-solicitation clauses. Agreements between businesses that prevent or restrict employees from taking employment elsewhere are generally prohibited, subject to limited exceptions connected with business-transfer negotiations.
A non-compete clause in Norway is only enforceable where the employer has a special need for protection against competition. To be valid, the restriction must be in writing, cannot generally exceed 12 months, and the employer must provide a written statement confirming whether the clause will be enforced after termination of employment in Norway. The employer must normally provide this statement within four weeks of the employee’s written request. Special timing rules apply when either party gives notice or the employee is summarily dismissed. The statement is generally binding on the employer for three months and, following notice, throughout the notice period.
An employer generally cannot enforce a non-compete clause when it terminates employment, unless the dismissal is objectively based on the employee’s conduct.
If the employer chooses to enforce the restriction, statutory compensation must generally be paid to the employee during the restricted period. Compensation equals 100% of the employee’s remuneration up to 8G and at least 70% of remuneration above 8G, subject to an overall compensation basis capped at 12G. The employer may make a limited deduction for other employment income, generally capped at 50% of the compensation.
Employers should review restrictive covenants when employment ends to determine whether they remain necessary and legally enforceable.
What must employers pay at the end of employment in Norway?
At the end of contract in Norway, employers must pay all outstanding employment entitlements owed to the employee. This typically includes unpaid salary, accrued holiday pay, approved expenses and any other contractual payments that have become due.
The final payment should reflect everything the employee has earned up to their last working day, including any commission, bonus or other variable pay where the employee has met the applicable conditions. Employers in Norway should also complete any required pension reporting and administer employee benefits in accordance with the employment contract or company policies.
If additional payments have been agreed, such as compensation for enforcing a non-compete clause or a negotiated settlement, these should also be included in the final payroll or paid in accordance with the agreement.
A clear breakdown of the final payment helps employees understand how their entitlements have been calculated and reduces the risk of payroll disputes.
When is severance pay required in Norway?
Severance pay in Norway is generally not required by law when employment ends. Employees who resign, are dismissed or are made redundant are not automatically entitled to severance simply because their employment has ended.
Instead, severance pay is usually provided where it has been agreed between the employer and employee or required under another arrangement. This may include:
- an individual employment contract.
- a collective agreement.
- a social plan introduced during a business restructuring.
- a negotiated settlement to resolve an employment dispute.
In many redundancy situations, employers may choose to offer severance as part of a voluntary separation or settlement agreement. However, this is typically a commercial agreement rather than a statutory entitlement.
The settlement should clearly explain the payment, tax treatment, termination date, notice arrangements, benefits, release of claims and any continuing obligations. Employers should also allow the employee a reasonable opportunity to obtain independent advice before signing.
It is also important to distinguish severance pay in Norway from an employee’s statutory final entitlements. Regardless of whether severance is offered, employers must still pay any outstanding salary, accrued holiday pay and other contractual payments due at the end of contract in Norway. Employees are also entitled to receive salary during the applicable notice period in Norway, unless another lawful arrangement applies.
How does CXC ensure compliant and efficient employee termination in Norway?
CXC helps employers manage termination of employment in Norway by supporting every stage of the employee exit process, from termination documentation and payroll to statutory employment obligations and offboarding. Our local experts help employers comply with Norwegian labour laws while reducing the administrative burden on internal HR teams.
When you partner with CXC, we can support your business with:
- preparing compliant termination and end of contract in Norway documentation
- managing final payroll, accrued holiday pay and other statutory employment entitlements.
- tracking the applicable notice period in Norway.
- administering employee records and offboarding activities.
- supporting collective redundancy processes and identifying when specialist legal advice may be required.
Every employment termination is different. Whether you’re ending a fixed-term contract, managing a redundancy or dismissing an employee for a lawful reason, our local specialists help ensure the correct process is followed, and employment obligations are met.
With CXC managing the employment administration, your team can focus on running the business while we help reduce compliance risks and deliver a smooth employee exit experience.
Speak to our team to learn how CXC can help you manage compliant employee terminations in Norway.
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